Westpac is set to help more Australians on the pathway to home ownership, with St.George, Bank of Melbourne and BankSA joining the participating lenders authorised to offer the Australian Government’s Home Guarantee Scheme (HGS)i.
Eligible home buyers with a deposit as little as 2% (Family Home Guarantee) and 5% (First Home Guarantee and Regional First Home Buyer Guarantee) can apply for a home loan through St.George, Bank of Melbourne and BankSA without paying Lender’s Mortgage Insurance (LMI) as part of the initiative.
Westpac Managing Director of Mortgages, Richard Burton, said this is great news for aspiring homeowners, with new Westpac research showing that cost-of-living and affordability challenges have not dampened home ownership ambitions.
Westpac’s latest Home Ownership Report has revealed one in five (20%) Australians are planning to buy a first home in the next five years, which is broadly in line with figures from late 2020ii.
This trend is largely being driven by Gen Z. Amongst this group, 44% intend to achieve home ownership in the next five years, with Millennials only slightly behind at 32%, Gen X at 14% and Baby Boomers at 2%. And one in 10 (11%) Gen Z’s plan to buy in the next 12 months, more than double the national figure of 5%.
“It’s encouraging to see that despite the higher cost of living and other affordability challenges, younger Australians are still the most driven in wanting to purchase a home and are taking steps to prioritise this goal,” Mr Burton said.
“Through expanding access to the Home Guarantee Scheme, St.George, Bank of Melbourne and BankSA will be able to help more Australians into the property market sooner with a smaller deposit,” he said.
“We’ve already helped more than 1000 Australians purchase their home through the HGS since Westpac joined the panel in July this year and we’ve heard some amazing stories about the difference it’s making for these customers in terms of accelerating their home ownership journey.
“That’s why we’re keen to let prospective customers know about initiatives such as the Home Guarantee Scheme, as they can make a real difference to helping people into homes sooner.”
The Home Guarantee Scheme comprises three Guarantees:
- First Home Guarantee – to support eligible home buyers to buy a home sooner, with a deposit as little as 5%.
- Regional First Home Buyer Guarantee – to support eligible regional home buyers to buy a home sooner, in a regional area, with a deposit as little as 5%.
- Family Home Guarantee – to support eligible single parents and eligible single legal guardians of at least one dependent to buy a home, with a deposit as little as 2%.
- This offer is now available for Westpac, St.George, Bank of Melbourne and BankSA customers.
Westpac has a number of calculators available to help buyers better understand their borrowing power and estimated repayments, as do St.George, Bank of Melbourne and BankSA.
Home Guarantee Scheme: Jay’s Story
Jay, and his wife and young daughter, are permanent residents who moved to Australia from India. They were living in Tasmania and wanted to move to Melbourne but didn’t have the 20% deposit to buy a home. After being referred to a Westpac lender, Jay found out they were eligible for a First Home Guarantee through the Australian Government’s Home Guarantee Scheme, which allowed them to access home finance with a 5% deposit. They then put in an offer on a house in Melbourne, which was accepted. Jay, his wife Hina and their daughter Shanaya are delighted to now be living in their new home and city.
